Kellogg (K) Tops Q2 EPS by 14c; Raises Outlook

Kellogg (NYSE: K) reported Q2 EPS of $1.18, $0.14 better than the analyst estimate of $1.04. Revenue for the quarter came in at $3.86 billion versus the consensus estimate of $3.64 billion.

GUIDANCE:

• Raises its guidance for organic-basis net sales growth to +7-8%, from its prior guidance of approximately 4%. This reflects better-than-expected growth in the first half, as well as revenue growth management actions and good in-market momentum, particularly in snacks and emerging markets.
• Raises its guidance for adjusted-basis operating profit growth to +4-5% on a currency-neutral basis, from its prior guidance of +1-2%. This reflects the Company's better-than-expected results of the first half, and already incorporates continued high cost inflation and resumption of investment in the second half.
• Raises its guidance for adjusted-basis earnings per share growth to approximately +2% on a currency-neutral basis, from prior guidance of +1-2%, reflecting the improved operating profit outlook, partially offset by a reduction in non-operating, non-cash pension income, stemming from a remeasurement that now reflects this year's higher interest rates and sharply lower equity and bond values.
• Raises its guidance for net cash provided by operating activities to approximately $1.8 billion, from prior guidance of $1.7-1.8 billion, with capital expenditure of approximately $0.6 billion, even after incorporating approximately $70-$80 million of incremental one-time charges related to the proposed separation transactions. As a result, cash flow is expected to be approximately $1.2 billion, up from prior guidance of $1.1-1.2 billion
  

For earnings history and earnings-related data on Kellogg (K) click here.

You May Also Be Interested In

• Korn Ferry (KFY) Tops Q4 EPS by 2c, Beats on Revenue; Offers Q1 Guidance
• BofA lists top 5 themes driving next $1tn in incremental semi sales
• Bernstein SocGen Reiterates Outperform Rating on Fervo Energy (FRVO)